Impact of cash flow forecasts - Cash-flow - Eduqas - GCSE Business Revision - Eduqas

The impact of cash flow forecasts on a business and its stakeholders

To play this video you need to enable JavaScript in your browser.

This video can not be played

Lu discusses cash-flow and business growth

Cash flow forecasts are very helpful tools for businesses and can be used to help inform business decisions, such as whether they need a loan or to decrease spending. Cash flow forecasting is also very useful for a number of business stakeholders.

Stakeholder	Impact of cash flow forecasting
Shareholders/owners	They will be able to see whether the business is likely to be in a positive or negative cash flow situation They can use the cash flow to make key business decisions If the cash flow looks negative, they can make changes immediately to change this
Managers	May make decisions that impact cash flow or the cash flow position of a business may impact the amount of money a manager has available to spend Managers may work with owners to manage cash flow and make business savings
Employees	May want to know the cash flow position of a business to see if their job is secure
Bank	Banks will use cash flow forecasts to decide whether they should lend to a business, how much they should lend and over what period of time
Suppliers	May want to know if a business is in a financially secure position before offering trade credit Suppliers may also want to know how much a business regularly spends on supplies for their business

Stakeholder	Shareholders/owners
Impact of cash flow forecasting	They will be able to see whether the business is likely to be in a positive or negative cash flow situation They can use the cash flow to make key business decisions If the cash flow looks negative, they can make changes immediately to change this

Stakeholder	Managers
Impact of cash flow forecasting	May make decisions that impact cash flow or the cash flow position of a business may impact the amount of money a manager has available to spend Managers may work with owners to manage cash flow and make business savings

Stakeholder	Employees
Impact of cash flow forecasting	May want to know the cash flow position of a business to see if their job is secure

Stakeholder	Bank
Impact of cash flow forecasting	Banks will use cash flow forecasts to decide whether they should lend to a business, how much they should lend and over what period of time

Stakeholder	Suppliers
Impact of cash flow forecasting	May want to know if a business is in a financially secure position before offering trade credit Suppliers may also want to know how much a business regularly spends on supplies for their business

Cash-flow - EduqasImpact of cash flow forecasts

The impact of cash flow forecasts on a business and its stakeholders

More guides on this topic

Related links